Appreciate the Difference: The Role of Different Domestic Norms in Law and Development Reform: Lessons from China and Japan

Abstract

Institutional models of development consider rule of law reform as one of the keys to improving the economies of developing countries. But the experiences of China and Japan indicate that advocates of this position have oversimplified the complexity of law and development reform. The author counters the view that China and Japan are "Asian exceptions" to the general rule that a Western conception of the rule of law is essential for development. Legal reforms to promote development need not embrace all the institutions that embody the ideals of liberal democracies, such as political freedom and human rights reform. Rule of law reform is effective if new legal institutions build successfully upon existing formal and informal social, political, cultural, and legal institutions.

The author begins with a "thin" conception of the rule of law that is procedural rather than substantive, and indicates how the experiences of China and Japan underscore the importance of identifying domestic institutional norms that can be used as a starting point for designing effective reforms. One of the essential elements of China and Japan’s successful economic development is their adaptation of foreign conceptions of the rule of law to ensure compatibility with domestic norms and values. Their experiences suggest that some economies can function well without adopting a Western liberal democratic conception of the rule of law, and indicate the possibility of alternative approaches to development.